Global markets are surging as the United States and China take a major step toward easing trade tensions. In high-level talks held in Kuala Lumpur, U.S. Treasury Secretary Scott Bessent confirmed that both sides have reached a âsubstantial frameworkâ aimed at preventing the 100% tariffs previously threatened by President Donald Trump earlier this month.
đ Key Highlights of the Deal
No New Tariffs: The agreement avoids additional U.S. tariffs on Chinese goods, easing fears of a renewed trade conflict.
Expanded Cooperation: Both nations will enhance collaboration in critical sectors such as rare earths, semiconductors, and agriculture.
Diplomatic Thaw: The deal sets the stage for an upcoming meeting between President Trump and the President of China, signaling improved relations.
Market Stability: Designed to stabilize global supply chains and rebuild investor confidence worldwide.
đ Immediate Market Response
Equities Rally: Asian stock markets and U.S. futures climbed sharply following the announcement.
Commodity Boost: Risk assets and commodities surged on optimism around trade normalization.
Crypto Uptick: Bitcoin and Ethereum showed positive momentum, reflecting a renewed appetite for risk assets.
> âWeâre going to make a fantastic deal with China â one that benefits both countries.â
â President Donald Trump, October 26, 2025đ° What It Means for Crypto
Risk-On Sentiment Returns: With macro tensions cooling, investors may pivot back toward Bitcoin, Ethereum, and high-volatility altcoins.
Institutional Reentry: Greater policy clarity could attract hedge funds, ETFs, and long-term institutional players.
Weaker Dollar Boost: Reduced tariff pressure may soften the U.S. dollar â historically a bullish signal for crypto assets.
On-Chain Growth: Improved liquidity and sentiment could drive stablecoin flows and DeFi participation.
Altcoin Rotation: A peaceful trade environment might trigger speculative surges in sectors like AI, RWA, and next-gen Layer-1s.
đź The Bottom Line
If the deal is officially signed by both leaders, it could mark the start of the first synchronized global market rally since 2021 â and crypto could once again take the lead in the next wave of risk-on momentum.
